Michael Burry Saw It Before Anyone Else — Then Estée Lauder's Story Took A Dramatic Turn

Estée Lauder Companies, Inc. (NYSE:EL) stock has climbed steadily over the past three months and jumped more than 10% on Monday following the death of Leonard Lauder, a longtime executive and son of founder Estée Lauder. 

Estée Lauder is Michael Burry's only current long position. Here's what to know: 

The Details: According to its most recent SEC filing, Burry’s hedge fund Scion Asset Management doubled its stake in Estée Lauder in the first quarter of 2025. 

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During the first quarter, the investment firm purchased an additional 100,000 shares in the world's second-largest cosmetics company, bringing its total holdings to 200,000 shares. 

Estée Lauder: Leonard Lauder, the influential executive who guided Estée Lauder from a single-brand operation to a global leader in the beauty industry, passed away last Saturday at the age of 92.

Shares of Estée Lauder stock jumped 10% in Monday's session following the death of Lauder. 

While it is unlikely that Burry foresaw a stock jump correlated to the death of a company executive, he did double his stake in the company and held it as his firm's only long position. 

Burry’s move could reflect a strategic bet on a recession and the so-called "Lipstick Index," which suggests consumers turn to more affordable luxuries like cosmetics during economic downturns.

“In the 2008 recession, cosmetics sales increased, showing that even in tough times, individuals crave tiny comfort purchases that give psychological boosts without a hefty financial outlay,” Kevin Shahnazari, founder of FinlyWealth, told LevelFields.

EL Price Action: Estée Lauder shares ended Tuesday's session up 0.27% at $74.79, according to data from Benzinga Pro. 

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